Clock is Running Down on 'Cheap' Mortgages

Hearld Tribune.com ^ | 1/ | Michael Pollick

[ex-Texan]

The first flurry of increasing rate charge notices just went out in the mail to thousands of home owners. As this editorial suggests, more notices will be going out in the next few months. There is a blogging site (HousingBubble 2) that reports people are moving away from Florida's south coast. Hurricanes may have caused some people to throw in the towel. Mobile home parks are dangerous in 70 mph winds. Other are cashing out and moving north. High priced condos are being built with no buyers lining up to buy them. (Want to learn more?) Did you listen to Coast2Coast last night? Several guests said the U.S. may be looking at a very rough 2006.

[montag813]

Rates have barely budged in 2 years. I paid 7.875% in May 2000, and re-fi'ed at 5.9% a year ago. It is now 6.15%. Big whoop.

[Kokojmudd]

Did you listen to Coast2Coast last night? Several guests said the U.S. may be looking at a very rough 2006.

If you believe in the power of Art Bell's psychics have I got a deal for you! 10 acres of lush, fertile, "rain forest" in Pahrump, NV (if you climb the coconut tree you can see Art's triple wide and radio tower) and a mickey mouse mortgage to boot!

[RegulatorCountry]

5.70% overnight average on a 30 year fixed rate conventional mortgage, and falling, according to http://www.bankrate.com

[pabianice]

I don't know about you, but "Pam" at "Galactic Lending Associates" sends me several emails a week telling me that I have "already been approved for up to $400,000!" if I transfer my mortgage to her company.

[peyton randolph]

I don't know about you, but "Pam" at "Galactic Lending Associates" sends me several emails a week telling me that I have "already been approved for up to $400,000!" if I transfer my mortgage to her company.

Pay off that house instead by replying to those Nigerian e-mails offering you millions in exchange for access to your bank account information. :-)

[ex-Texan]

montag813 -- You need to read more slowly or more carefully. Or try to understand what you just glanced over. Thousands to people bought home in the past two years on mortgage with 2.5% - 2.9% teaser rates. People who elected to purchase $ 500,000 homes with Option ARM loans in 2004 will be getting notices of increased rates. Their mortgage payments will be going went up from about $ 1,200 a month to over $ 3,000.

Kokojmudd -- Coast2Coast has millions of listeners. I do not put any faith in what psychics claim. But the program does influence millions of people who share their opinions with others.

Both of you people ought to read the entire editorial. The writer has many uncomplimentary things to says about realtors and mortgage brokers.

[SierraWasp]

Ha Ha Ha!!! Good shot!! I love that Pahrump "rain forest!" Haaaaaaaaaaaaaaaa Ha Ha!!!

[Shalom Israel]

It'll-be-fun-to-watch-folks-eat-crow-when-it-bursts ping to self.

[Glenn]

My Realtor was begging me to take an ARM when I relocated to PA. It would allow me to buy more house then I wanted or needed. I took a fixed 15 year loan at a slightly higher rate, but there was no volatility with it. That made all the difference to me.

[ex-Texan]

You said it. I didn't. What goes up must come down. Source

[SierraWasp]

"The writer has many uncomplimentary things to says about realtors and mortgage brokers."

Why the extreme prejudice toward two of America's great legitimate industries that help multi-millions each and every year? I'll bet you were one slammin the stock brokers because the market went down for 3 years, right???

Stick to staumpin out the evil in politics, not industry!!!

[TXBSAFH]

These people bought more house the they could afford. It is comming home to roost in thee next to years. Upside is that my wife and I are thinking og looking for a larger house then.

[ex-Texan]

Gooogle is your friend

[NormsRevenge]

We're on our 4th Re-Fi in 20 years.

We started out on a fixed 30, went to a 15 year fixed, then a 40 year fixed, then a hybrid ARM, just rolled that for another 5 year fixed ARM, that in 5 years would increase monthly payments by half again.

By the time that happens, we'll all be speaking Spanish or Chinese anyway, the Big One will have wiped out the state, my wifey will retire and we can sell all our property and move to Mexico or Hawaii or aliens will have re-assumed control of the globe, in which case, all bets are off.

They are still building in many areas of the country, the population (including illegals) continues to grow and they don't make land anymore except in Hawaii.

I realize that doom and gloom senarios exist, but in the end, what else is new.

Eat, drink and be merry.. for tomorrow we Re-Fi. :-D

[ken5050]

BTTT..

[kx9088]

We are about to close on the sale of our condo, then we're moving in with my in-laws to pay off a car loan and the student loans and save money, more so because we want to relocate about 80-100 miles from here (where a $240k house there would cost $450-$600 here) and I want to continue to work here though so we want the extra money.

As much as I don't want to live with my in-laws I feel this is our best chance of breaking out of this hole that is Philly metro area.

[Steven W.]

you didn't have to be listening to Art Bell last night to know this is extremely depressing. Doomed, Doomed they say! The vibes were so intense the radio needn't have even been on ... walls echoed with the vibrations glistening off the metallic sheen of listener's tin foiled hats.

[TXBSAFH]

A lot of people will lose their shirts with all the creative finacnes going on lately. That and off shoring. A family that lives on my street,their house is being forclosedon. His job was shipped to China, and they arelosing it all. Got to love free trade. Not.